US Inflation Rate Falls to 3.2% in October
The U.S. Labor Department recently released the U.S. Consumer Price Index (CPI) data for October, revealing a 3.2% increase in the U.S. inflation rate on an annual basis, slightly lower than the market’s expectation of a 3.3% surge. This marks a decline from September’s 3.7% inflation rate, indicating that inflation is cooling due to the aggressive stance of the U.S. Federal Reserve.
This news was eagerly anticipated by the crypto market, as it could influence the central bank’s next policy rate decision. The cooling inflation seems to have relieved some concerns among market participants, as the Federal Reserve may adopt a more dovish stance given the declining inflation.
US Core Inflation Rises by 4% in October
The latest data also showed that U.S. Core inflation, which excludes food and energy prices, increased by 4% year-over-year, slightly lower than the market’s expectation of 4.1%. On a monthly basis, the Core CPI rose by 0.2%, compared to the consensus estimate of a 0.3% surge. Notably, on a monthly basis, the CPI remained unchanged in October.
Despite the cooling effect of the Federal Reserve’s aggressive stance on inflation, it remains higher than the central bank’s target rate of 2%. This has continued to impact market sentiment throughout the year, with higher interest rates dampening sentiment in financial markets and affecting risk-bet digital assets.
Crypto Market Performance & Prices
Following this news, the global crypto market cap declined by 1.17% to $1.39 trillion while trading volume surged by 23.33% to $62.01 billion. The fear and greed index for the crypto market was at 75, indicating a greedy scenario among investors.
Bitcoin’s price dropped by 0.67% to $36,623.11 with trading volume increasing by 32.04% to $19.09 billion, while Ethereum’s price fell by 0.94% to $2,033.42 and its trading volume rose by 35.04% to $13.21 billion over the past 24 hours.
BNB saw a decrease of 0.56% in price to $244.15 with its volume increasing by 18.13%, and Solana experienced a slump of 6.38% in price to $53.48 while its trading volume grew by 27.97% over the last 24 hours.
Hot Take: What Does This Mean for Cryptocurrency Investors?
The recent CPI data release has brought some relief as inflation appears to be cooling down due to Federal Reserve intervention, potentially influencing their future policy rate decision and impacting market sentiment across various asset classes including cryptocurrencies.
